WeWork’s dollar bonds jumped following the release of the co-working company’s extensive restructuring plan. After finalizing the terms last week, WeWork said that it will reduce total debt by ~$1.5bn through:

  • Equitization of $1.04bn in its 5% unsecured notes held by SoftBank at a discounted value of 90% of par
  • Conversion of the remaining $609.5mn of its 5% unsecured notes into new debt and equity at a discount to par

Additionally, public bondholders of WeWork’s 5% 2025s and 7.875% 2025s will be exchanged for equity or a mix of debt and equity, at a discount. With the new arrangements, WeWork managed to extend its significant maturity wall of $1.9bn from 2025 to 2027. WeWork also secured more than $1bn of fresh funding from bondholders such as BlackRock, King Street Capital Management and Brigade Capital Management. The debt restructuring plan is well-received at launch, including the support of SoftBank and ~60% of public bondholders. The improved balance sheet post-transaction will “allow the company to pursue value-additive growth opportunities, providing further upside potential” as per WeWork.

WeWork’s 5% 2025s were up 11.75 points to 52.73 cents on the dollar.

For more details on the restructuring, click here

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